Connect with us
Active Currencies 14910
Market Cap $2,255,130,939,445.40
Bitcoin Share 50.67%
24h Market Cap Change $1.50

Will Optimism’s Bedrock disrupt L2 dominance as Mainnet gets date? Gauging…

2min Read

As the Ethereum L2 gets set to implement the upgrade, users might need to wait a few hours before re-starting transactions.

Will Optimism’s Bedrock disrupt L2 dominance as Mainnet gets date? Gauging...

Share this article

  • The L2 project will move from the Goeril Testnet to the final Bedrock on 6 June.
  • Still, Arbtirum has dominated it in terms of active addresses.

Layer two scaling platform Optimism [OP] has finalized the date for the Bedrock upgrade. According to its official announcement, it would take place on 6 June. The upgrade, which was talked through earlier in the year, would help improve the performance of the Optimism network.


Realistic or not, here’s OP’s market cap in ARB terms


The deployment may have potential

Besides that, the upgrade, whose Goerli Testnet took place in January, would also contribute to speed, blockchain compatibility, and providing affordable transaction cost.

Despite several attempts at improving its ecosystem, Optimism has been lagging behind Arbitrum [ARB] in various aspects. In terms of the number of transactions on the network, the latter proved again and again that it was far ahead of the former.

On looking at the active addresses over the last 30 days, Santiment showed that Optimism has not fared well in that aspect.

Active addresses show the level of speculation around a token, and the rate at which market participants have contributed to transactions on the network. With the metric at 119,000, it means that crowd interaction has been extremely minimal since OP succumbed to the attention investors gave to ARB.

Although Arbitrum has suffered the same fate with a decline within the same timeframe, it differed from the downturn of its opposite number. At press time, its active addresses had decreased to 447,000. But nonetheless, the project still had the upper hand over Optimism.

Optimism active addresses and Arbitrum active addresses

Source: Santiment

TVL still down

However, there is a chance that the full implementation of the Bedrock upgrade could drive users back to OP. As recent as the previous week, Ethereum [ETH] gas fees have been incredibly outrageous. The emergence of memes via the Arbitrum network also impacted the surge.

So, in a situation where Optimism could offer better transaction costs, Arbitrum could face fierce competition with respect to adoption.

Despite a 73.9% hike in daily transactions per second, the Optimism Total Value Locked (TVL) has been hit with a severe drop. According to L2BEAT, the TVL of the Ethereum Virtual Machine (EVM)- compatible project was $1.71 billion.


Is your portfolio green? Check the Optimism Profit Calculator


The TVL measures the health of a protocol by gauging the level of smart contracts’ interaction with it. Thus, the decline implied how Optimism has been starved of unique deposits from investors.

Optimism TVL

Source: L2BEAT

In conclusion, Optimism gave some pointers to prepare for the Bedrock upgrade. According to the announcement, deposits and withdrawals would be paused for some time — possibly between two to four hours. This would allow nodes to be effectively distributed on the new network.

Share

Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.